The small accounting firm of Cookie and Associates provides two products to its clientstax services and audit services. They have 150 tax clients and 50 audit clients. Last year, sales revenue totaled $1,200,000 for tax services and $3,000,000 for audit services. A total of 10,000 direct labor hours were required for tax clients at a cost of $550,000, and 35,000 direct labor hours were required for audit clients at a cost of $1 ,750,000. Direct materials used were negligible and are included in overhead costs. Last year, total overhead costs of $1,350,000 were allocated based on direct labor hours. . Organize the information above into a table in your google sheet . Allocate the overhead cost to the two services . Calculate the total profits for tax services, audit services, and the company as a whole. . At the bottom of your table, calculate the following business metrics by type of service and in total: 0 Revenue per direct labor hour (also known as "Billing Rate") 0 Profit per direct labor hour 0 Profit per customer Cookie is worried that the existing accounting reports are not doing a good job of allocating costs and reporting prots for the different services. She has decided to switch to Activity-Based Costing (ABC). She has hired a business consultant. The consultant has studied the business, identied four core \"activities" that are required to support the company's business, estimated the costs of those activities, identied reasonable cost drivers, and gathered information on the cost drivers for the previous year. The information is shown in the table below. . Create a second analysis in your google sheet from the previous question. . Add the information in the table below to your analysis and allocate costs using ABC. . Calculate the total profits for tax services, audit services, and the company as a whole. . At the bottom of your new table, recalculate the following business metrics by type of service and in total: 0 Revenue per direct labor hour (also known as "Billing Rate") 0 Profit per direct labor hour 0 Profit per customer Cost Driver Ac Reporting and Documents Management 240,000 Computer and Data Services 600,000 1,500 Ofce Management 360,000 Direct Labor Hours 10,000 Cost Driver Activity Estimated OH Cost Cost Driver Tax Audit 1g and Documents Management 240,000 # of Customers 150 50 er and Data Services 600,000 Computer Hours 1,500 2,500 sing 150,000 # of Advertisements 40 10 Management 360,000 Direct Labor Hours 10,000 35,000 1,350,000Compare your results in the last two questions. Show how the change from a single allocation rate to ABC moves costs between Tax and Audit services